Canara Bank reported a net profit of Rs 4,856 crore [1] for the first quarter of the 2026-27 fiscal year.
The results signal the lender's attempt to balance steady profit growth with an aggressive strategy to attract foreign currency to fund expanding loan books. This move comes as the bank seeks to maintain a low non-performing asset ratio while scaling its operations.
The bank's net profit for the April-June 2026 period rose slightly from Rs 4,752 crore [2] in the same quarter of the previous fiscal year. Net interest income for the quarter reached Rs 10,215 crore [3], an increase over the Rs 9,009 crore [4] recorded in the prior year's first quarter.
To support continued loan growth, Canara Bank announced a target to raise approximately US$ 1.3 billion [6] through Foreign Currency Non-Resident (FCNR) deposits. This capital influx is intended to provide the liquidity necessary to meet the bank's target loan growth of 11 to 12 percent [5] for the current fiscal year.
Asset quality remained a focal point of the report. The bank's gross non-performing asset (NPA) ratio stood at 1.57 percent [7]. The lender said there was a decline in fresh slippages, which contributed to the stability of the asset portfolio.
MD and CEO Brajesh Kumar Singh said the bank is focusing on these deposits from overseas Indians to diversify its funding sources, and manage the double-digit increase in advances seen across its portfolio.
“Canara Bank reported a net profit of Rs 4,856 crore for the first quarter.”
Canara Bank's focus on FCNR deposits indicates a strategic shift toward leveraging the Indian diaspora to fund domestic credit growth. By targeting US$ 1.3 billion in foreign currency, the bank can reduce its reliance on domestic deposits and potentially lower its cost of funds. Combined with a low gross NPA ratio of 1.57 percent, the bank is positioning itself to expand its loan portfolio aggressively without compromising its balance sheet stability.
